The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-07-29
Gag IyTERBOGAToRs'
,.,.nd Stanford Before the
Ds government Commission,
.nps1DENr OF THE S. P.
,,.s Of the Questions Asked
BE prssents a Long Written
''s s,a.ement of C. P. Affairs
LIZ. Railway Commission.

- Pacific Railway Commission
~ Francisco, July 28.-United
oaa senator Leland Stanford ap-
o''ss n his capacity as president oil
pare s.ntbern Pacific Railway before
the o ou Railway Investigation Com
the ere TO- to answer certain interrogatories
ml''ss y tbe affairs of the Central
t n2sc now consolidated WIN T tne
Psci .5s,n ~ Pacific Railroad. Inc
southern commission had pro-
goTel Ind fity- eight interrogatorles to
pOuniqissuut Stanford, when he supplied a
Preslusn answer at great length. Mr..
written 'T nIrimarily declared that the
5tanLoiiIp pacific was organized under the
Uenuafi California, and denied that any
lsRs u ITS It's contracts authorized the
thing ~ ;nlvvestigstion on the part of the
pIsssaT,nment, but conceded Willingness
onsver questions. He reviewed the
70 sn 81 the public agitation in 1S60-62,
lsc! " On Construction of a transcontl-
iof !nT -silwsy, and reVerts TO the pas
nehsatf tbs act for the construction OF
say T =, ir Pacific to the California
inc line line In the meantime the
Stav t-,i Pacific had proSpered with the
Ven' terc,ion of q road over the Sierra
S TsTsds Mountains, which he claims,
Se eiI Ssen regarded as impossible; when
nau o UJS to insure a speedy construc-
N w ~ the road across the continent a
tlun S " act was passed by Con :
I, 'aarthorizing the construction of
~ ,Sa Union and Central Pacific
Uo. JUL tbsv should meet. Stanford makes
M Lnal stl that when the roads were un
tas Zen government was paying S.
S66 AM annually for carrying military
and Indian supplies and the United
States mails. He commended that this
oo nm was to be paid to the
.oarcsd and that it was understood
y vonld never be less and that this
oor,nensation should be credited to first
nrincipsl and the company would also
nav government per cent. OF its net
s sa2rings and would liquidste all OBJ
legations Of the government before the
expiration of thirty years. He claims
hat instead of this compensation for
tbis government service, it was reduced
nv the government to point
less than that allowed to the roads in
the east. Stanford urges the further
claim that the bonds, owing to the war
OF the Rebellion being in progress, were
disposed OF at discount of over 81 ,000,-
600 This discount, with interest at
maturity be computes at $50, 900 900.
There vas also like discount suffered
in the sale of the first mortgage bonds.
he then reviews the benefits bestowed
By the construction in the development
Of the country, and speaks OF. Congress
siJnal legislation in contrast as having
been unduly burdensome. He especi-
ally inyeighs against the Thurman act,
providing for the sinking fund. He
says this fund has been invested By
the Secretary of the Treasury
IN government bonds, issued for
the construction of Pacific railroads.
These bonds were disposed of by the
company at an average of about zoe.
on The dollar, at loss in the aggregate
on principal of S7,O0O,0OO. Government
charges interest on these bonds at the
rate Of per cent. on their par value.
The secretary has invested the money
winch the company has paid under the
thurman act IN these bonds, paving an
average premium of 81 per cent. There
ass been paid in by the company to
me anAng fund over SO 900 900, the
.Vs2 On Shlch IN interest and premium
up: % Inc present time is $l,620 COO. II
.aS.; mere IS less money in the
sl.Gng iund today than the amount
ga'u N N 0y the company by over $500, =
~ STAFFORD declares that when the
Osal1a- Iaclhc road was constructed
~ IVA road was contemplated. He
H W mat the land subsidies to the
I I. Pacific, Atlantic q Pacific and
clemson 1.o., Topeka & Santa Fe were
Sis S1.e' man 10 the Central Pacific, and
C o-sIinS maj BY the construction of these
T 1G1ts, alaeG by the government, the
"a 49, H6S q oo ana Union Pacific have lost
~, ro.,yOO ~ IN tratiC. Making a sum-
a La stanford claims that being com
geneu % sell their bonds received from
- S-T ooo goI16pernment entailed a loss of
s .59y', and with the interest
aided to maturity the amomnt
nnr SSe-leu to S20000,0OO in round
MAJ ,,--o sls- he then claims that govern
ro. ma S =! ron the completion of the
IS-S "a Nay, 1869, down to july LIST,
Desrlr a 40 me a1e way of transportation
P cp;;s Si3SI0oO. OF this, the CentraI
nss,1 earl ". Vas entitled to 46 per cent, or
OEas f--'VUU 100. Government now
lsssr,-o 5 road for transportation. the
M 1S;.'y VI which has been sustained "
~, 'Sp!eme Court, S1,S53, 900. He also
esi6s .iS'ln 4. 10 q loss of $500, 900 BY the
oom1a,o OF government to grant the
Ss Eau! patents for its lands
gs,t,,. .Oss Of sinking fund in
Ts.-1 eAIs IN the United Steta.
sTiia 1sl Is placed at 81 ,61S 600. FinalIV
- -OsS Vi business due To its 6iversior
daiTT's1 MI 81 subsidized roads, Stanford
a IoS -,s - nat !; the company has sustainaG
;b ~ o. SII 900, 900. President StsnforJ
-5o o.el0fe, informed the commis 81 u
tba a' IN. me road had 8 valid claim saoinI,
I'M ~ 5CSo'efnment OF round total of ESQ
m TSo,ucV to apply against the 900, ~ soO'
Son on Isl, ,,sn on the road. The Conn !.
pra + permitted Stanford 10 read L -,
sg S5g;sSeo report, but has not IL III
~'71 MIN to any questioning -
Lief. l56. " '"Aone' Instant re
ROUGH ON CoRNs. u b.,a 49,,